6 things to know about N.W.T.'s infrastructure plans

For the second year in a row, the Northwest Territories legislature is budgeting an additional $50 million for infrastructure projects.

N.W.T.'s Finance Minister Michael Miltenberger releasedthe capital budget last week and now members of the legislative assembly are reviewing what the territory plans to spend.

The money kicks in next April. However, debatingthe capital budgetin the fall gives contractors and departments some extra time to plan in advance of the construction season, especially given the short window of warm weather for projects such as road paving.

Unlike some budgets, thecapital budget doesn't attach dollar figures to specificitems. This is to ensure bidders don't seeinformation that would tip them offtohow much the government is prepared to pay. Instead, there are general amounts for what will be spent by each department. However, plenty of details about the territory's financial plans are usually discussed during committee of the whole meetings in the legislative assembly.

Here are six things you need to know about the 2015-2016 capital expenditures.

1. Where's the money going?Roads, schools and hospitals, but mostly roads

Here are the highlights of this year's capital budget, according to Miltenberger'saddress to MLAson Friday:

• $108 million for highways and winter roads
• $84 million for new health facilities, renovations and information systemupgrades, including part of the Stanton TerritorialHospital revamp
• $28 million for community infrastructure
• $15 million for small capital projects across departments.

Here's the breakdown by department of where this year's money is going:

2. There's only so much money left to borrow

The territory's credit card is almost at its limit,with lessthan $100 million left in the $800 million borrowing limit.

This past summer's $55 million wildfire season and the $20 millionpower subsidynarrowed the gap to the debt ceiling, leaving little wiggle room for big projects or unforeseen costs.

The federal government raised the borrowing limit in2012, in part to allow for projects such as theInuviktoTuktoyaktukhighway. Since then, the finance minister has been lobbying to raise it even higherto $1.8 billion. That could help build projects such as the Mackenzie Valley Fibre Optic Link or connecting transmission grids.

Inthe legislature, Range LakeMLADarylDolynnyquestioned whetherit was responsible of the government to raise the borrowing limit in order to take on more debt.

"Although we hit the wall of worry some time ago, apparently all we have to do is fill out the Joe Oliver American Express Card application form and presto, we're back inking those cheques."

"This is not a way to deal with debt management," Dolynny told CBC News."I think history is going to judge us as being potentially the assembly that put us in the corner by our spending. I'm really, really, gravely concerned."

It's the government's policy to fund half of its infrastructure spending with operating surpluses, which limits what can be spent.Next yearMiltenbergersays the plan is to scale back infrastructure spending, as it was during the first two years of this government.

But there may be some hope for tackling the territory's estimated $3 billion infrastructure deficit.Miltenbergersays theterritory and municipalities are also hoping to tap into the New BuildingCanada fund, $258 million over the next decade. Hesays he'll be bringing forward a proposal for howto spend this in February.

3. It's a post-devolution world. Well, kind of

Resource royalties are now going directly to the territory but they're not being spent yet and the economic outlook isn't as rosy as hoped. Speaking in the house,Miltenbergersaid expected revenues are down slightly this year due to poor economic activity.

On average, he's expecting $113 million annually over the next five years, compared to the $120 million that was anticipated. Half of that will go to the federal government, a quarter of the territory's share goes directly to aboriginal governments and a quarter of the remaining money will be put in a Heritage Fund. That leaves approximately $31 million to be spend on paying down debt, future big ticketitems and infrastructure. Not exactly rolling in cash.

Nonetheless, the territory is still optimistic about expandingits population. Two thousand newresidents would increase the amount of transfer payments from Ottawa and with a larger population, the territory could keep a larger share of those resource revenues. However, as of Junethe population was stilldeclining, with close to 400 people moving out of the territory in the first four months of this year. The exodus to the rest of Canada hasn't been that large since 2010.

Miltenbergersays they're working to minimizethe number of people whofly in and out from the mines and trying to fill vacanciesin the public service. He says Industry, Tourism and Investment's upcoming EnergyCharettewill look at energy generation and lowering costs ofpower, whichwill be appealing to potential residents.

4. SomeMLAssay the territory is pouring too much into roads

Some members of the legislative assembly say the territory is spending money it doesn't have.Bob Bromley, member for Weledeh, who typically has views that are far from Conservative, says thegovernment ispouring more than necessary into infrastructure.

"Northerners have a record of achievement in the absence of infrastructure as long as they are givenappropriate supports, and this government's approach is to throw money atinfrastructure, particularly to try and attract mega development when we know the globaleconomy is not there."

Bromley calls the capital estimatesincomplete because year and year there are capital coststhat come in the form of supplementary appropriations. Last year the territory budgeted $222 million for infrastructure and in actuality it spent $322 million.

WendyBisaro, who represents Frame Lake, questionswhy a third of the budget is going to highways and winter roads.

"The focus in this budget, for me, is weighted too heavily on economic development andon transportation projects," she said. "We haven'tputenough money intoinfrastructure, which is going to assist our people. Im thinking about schools, Imthinking about health structure, and I know theres some money in there, but I dontthink the same emphasis is on those kinds of infrastructure investments as it is inhighways and economic development."

5. Plans for new investments in wildfire preparedness

This year's wildfire season battered the financial books, costing three per cent of the overall budget. The capital plans includesbuying eight new air tankers. The Air Tractor At-802AF Fire Bosses areexpected to cost $27 million.Miltenbergersays the current fleet of CL-215sare sooutdatedupgrading themwould cost $120 million.

"If the new normal, God forbid, is what we saw last summer, then we are definitely going to want to make sure we can assure thepeople of the Northwest Territories that we have the tools ready for the people, men and women in the air and on the groundthe thin line that protects us from the ravages of forest fires."

However, while the territory is in line for the new tankers, it maytake years for the new planes to arrive.

The capital plans also includea territorial fire centre in Fort Smith,a new facility for wildfire crews in Fort Simpson, as well as upgrades to the air tanker bases in Norman Wells and Hay River. There will be network upgrades, new lightning sensors and new lookout towers near Enterprise and Schiltee Rock, which is close to Fort McPherson.

6. Inuvik to TukHighway gets a cash advance

On Friday,Miltenbergeralluded to giving the Inuvik to Tuktoyaktukhighway project a $40 millioncash advance in the form of a supplementary appropriation. This will be in addition to the approximately $20 million that's already pegged for the mega project in this capital budget.

Miltenberger says approving the money now will ensure the work won't stop if money runs out in January. Construction on the 137-kilometreall-weather road can only rampup when the ground freezes, so the construction season runs mid-November till late April.He says approving the money now may also allow the project to finish up in three years, instead of four.

But Dolynnyis questioning whetherthis could bump other projects in the long line for capital money.

"Were now taking money from a future budgetseason and accelerating it here, which is of concern for a few of us here."

For ongoing coverage of the legislative assembly session, you can follow reporter Elizabeth McMillan on twitter.